New York State Assembly

 
•  Summary 
 
•  Actions 
 
•  Floor Votes 
 
•  Memo 
 
•  Text 

A01346 Summary:

A01346 Actions:

A01346 Floor Votes:

A01346 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         1346--C
 
                               2011-2012 Regular Sessions
 
                   IN ASSEMBLY
 
                                       (Prefiled)
 
                                     January 5, 2011
                                       ___________
 
        Introduced  by  M.  of  A.  GANTT,  ESPINAL,  BRINDISI  -- read once and
          referred to the Committee on Transportation --  committee  discharged,
          bill  amended,  ordered  reprinted  as amended and recommitted to said
          committee -- reported and referred to the Committee on Codes --  again

          reported  from  said  committee  with amendments, ordered reprinted as
          amended and recommitted  to  said  committee  --  recommitted  to  the
          Committee on Transportation in accordance with Assembly Rule 3, sec. 2
          --  reported  and  referred  to  the  Committee  on Codes -- committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee
 
        AN ACT to amend the vehicle and traffic law, in relation to satisfaction
          of a security interest in a motor vehicle by a dealer
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  The  opening paragraph of section 2121 of the vehicle and
     2  traffic law is designated subdivision (a) and a new subdivision  (b)  is
     3  added to read as follows:

     4    (b)  A  dealer who receives a motor vehicle for the purposes of resale
     5  and who arranges for the satisfaction of any security interest  in  such
     6  vehicle,  and  for  which  a  release  of security interest has not been
     7  issued, may submit to the commissioner  sufficient  evidence  to  demon-
     8  strate  that such security interest has been satisfied and shall provide
     9  notice to the lienholder two weeks prior to submission  to  the  commis-
    10  sioner.  The commissioner shall, upon receipt of such evidence, a proper
    11  application and the  appropriate  fee  pursuant  to  section  twenty-one
    12  hundred twenty-five of this article, promptly issue, within no more than
    13  fifteen  business  days  of  receipt  by  the department of all required

    14  information and fees, either a duplicate certificate without  such  lien
    15  included  thereon,  or a certificate without such lien included thereon.
    16  Evidence that a security interest has been satisfied shall include:  (i)
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03368-11-2
        A. 1346--C                          2
 
     1  evidence that an interbank or electronic  transfer  of  funds  has  been
     2  made; or (ii) evidence that a copy of a cashier's or bank check has been
     3  delivered;  or  (iii) other evidence as determined to be satisfactory by

     4  the  commissioner;  and  (iv)  evidence that the amount delivered to the
     5  lienholder is equal to the amount which  has  been  represented  to  the
     6  dealer  by  the  lienholder  as  sufficient to satisfy such lien.   Such
     7  evidence shall be accepted by  the  commissioner  as  sufficient.    Any
     8  evidence submitted to the commissioner pursuant to this subdivision may,
     9  subject  to  approval  of  the  commissioner, be submitted in electronic
    10  form.   In addition to  the  penalties  imposed  by  section  twenty-one
    11  hundred thirty of this article, any dealer who alters or forges evidence
    12  of payment, or fails to make a payment, shall be liable to any party for
    13  any  damages  resulting  from  the  issuance of a new certificate by the

    14  commissioner, plus attorney's fees and costs incurred in recovering such
    15  damages, provided however no subsequent purchaser of a vehicle where the
    16  security interest was removed by the commissioner under  the  provisions
    17  of  this  subdivision  shall  be liable for any errors in the removal of
    18  such security interest, and any dealer who so applied for the removal of
    19  such security interest on such vehicle shall indemnify any such purchas-
    20  er and lienholder. The commissioner is authorized to adopt  and  enforce
    21  reasonable  rules  and regulations necessary to carry out the provisions
    22  of this subdivision.
    23    § 2. This act shall take effect on the one hundred eightieth day after
    24  it shall have become a law.